Rare! Apple experiences two consecutive days of sell-off, with a cumulative decline of over 6%, resulting in a market value evaporation of $190 billion.

Apple's stock price fell more than 5% in intraday trading on Thursday, breaking below the 100-day moving average. It has experienced two consecutive days of investor selling, with a cumulative decline of over 6%, resulting in a market value loss of $190 billion.

In a report on Thursday, Laura Martin, an analyst at the well-known Wall Street institution Needham, wrote that the AI boom could disrupt Apple's position as the world's largest market capitalization company. Microsoft, Alphabet (Google's parent company), and Amazon could surpass Apple in market value due to the growth of AI.

Currently, Apple's market value is about $2.77 trillion, Microsoft's is about $2.5 trillion, Alphabet's is about $1.7 trillion, and Amazon's is about $1.4 trillion. These four companies are all members of the "trillion-dollar market cap club."

Martin believes that Apple's lack of a strategy for generative AI and large language models (LLMs) puts it at risk. Apple is not a core beneficiary of generative AI, although the company can protect its top-notch ecosystem from infringement.

Martin points out that the other three giants, Microsoft, Alphabet, and Amazon, are more mature participants in the rapidly developing field of AI. Alphabet is expected to surpass Apple in market value with the help of its cloud business, generative AI capabilities, and top-notch global consumer data.

Microsoft and Amazon also have a first-mover advantage in large language models, and latecomers in this field are destined to fail. Microsoft, Amazon, and Alphabet have large cloud businesses that allow them to operate their large language models more cost-effectively, giving them an advantage in the field of AI.

Previously, another super bullish analyst at Nvidia believed that Nvidia's market value could surpass Apple's current market value.

In fact, Apple is not without efforts in the field of AI. According to Wall Street CN, in order to accelerate the development of large language models, Apple has significantly increased its research funding, burning millions of dollars every day. It has also poached many engineers from Google and made a bold bet on the 200 billion-parameter Apple GPT. Apple employees unanimously believe that their Apple GPT large model capabilities have surpassed GPT-3.5. However, analysts believe that running large models requires not only powerful computing power but also sufficient storage space, which is somewhat challenging for a small iPhone.

The China Fund News commented that Apple's consecutive two-day stock price decline is rare. On the one hand, the upcoming release of the iPhone 15 series next week will intensify competition with the popular Huawei smartphones. On the other hand, there are reports that the iPhone has been banned in certain situations.

Some analysts predict that at the new product launch event early Wednesday morning Beijing time, the high-end iPhone 15 released by Apple may have a starting price that is up to $100 higher than the previous generation, which means that the price of the high-end iPhone may increase by up to $100. In recent years, Apple has achieved significant results by guiding consumers to purchase high-end models. Even if iPhone sales remain stagnant, Apple's revenue and profits have increased. However, analysts warn that this strategy may reach its limit, and Apple's flagship product, the iPhone, will face a test.

In addition, some media comments suggest that to ensure the resilience of the US economy, the Federal Reserve may have to increase its efforts to combat inflation, leading to the selling of US bonds and an upward trend in US Treasury yields, which also poses a challenge to Apple's stock price.